TORONTO (Bloomberg) - Canadian stocks fell a second day, led by Encana Corp., after oil prices fell and US Federal Reserve chairman Ben S Bernanke said the central bank is concerned by a rise in inflation expectations.

The Standard & Poor's/TSX Composite Index fell 38.15, or 0.3 percent, to 14,690.46 in Toronto, after rising as much as 0.4 percent earlier. The market erased the gain after Mr. Bernanke's comments raised concern interest rates may rise in the US, Canada's main trade partner.

Energy companies, the biggest component of the S&P/TSX, led the index to an all-time high on May 20 as crude oil futures rose to a record $133.17 a barrel the following day. Oil has since fallen 8.2 percent and energy shares are down 5.7 percent.

"The move in oil was everything here since yearend," said Gerry Brockelsby, founding partner at Marquest Investment Counsel in Toronto, which manages C$300 million. "It's coming down now, and it would be great it if it went under $100. That would take the wind out of the sails of inflation."

EnCana, an oil and natural gas producer that has the largest weighting in the index, fell C$1.15, or 1.3 percent, to C$89.25, as crude oil for July delivery fell 1.7 percent.

Suncor Energy Inc., the world's largest tar-sands oil producer, fell 60 cents, or 0.9 percent, to C$66.

Declines for energy companies were limited as natural gas futures rose for a fourth day, climbing 1.3 percent to $12.379 per million British thermal units, the highest since December 2005.

Energy companies account for almost 32 percent of the benchmark.

Bombardier Inc. rose 74 cents, or 9.1 percent, to $8.90. The world's third-largest maker of commercial aircraft reported net income in the three months ended April 30 of $226 million, or 12 cents a share, beating the average analyst estimate of nine cents.

Bombardier said it will reinstate a quarterly dividend of 2.5 cents Canadian, which will be paid on July 31.

Research In Motion Ltd., maker of the Blackberry e-mail mobile phone, rose 1.4 percent to C$136.44.